09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Essentials of Services Marketing, Second Edition

NEXT

PREV

Chapter 10. Craftin...

Part IV: The ESM Fr...

Recent

Topics
Tutorials

Chapter 11. Managing People for Service Advantage

LearningObjectives
Bytheendofthischapter,thereadershouldbeableto:

Highlights

Settings
Feedback (http://community.safaribooksonline.com)

LO1Explainwhyserviceemployeesaresoimportanttothesuccessofafirm.

LO2Understandthefactorsthatmaketheworkoffrontlinestaffsodemanding

Sign Out

andoftendifficult.

LO3Describethecyclesoffailure,mediocrity,andsuccessinHRforservicefirms.

LO4UnderstandthekeyelementsoftheServiceTalentCycleandknowhowto
getHRrightinservicefirms.

Settings
10 days left in your trial.

Subscribe.

Feedback

LO5Knowhowtoattract,selectandhiretherightpeopleforservicejobs.

LO6Explainthekeyareasinwhichserviceemployeesneedtraining.

(http://community.safaribooksonline.com/)

Sign Out

LO7Understandwhyempowermentissoimportantinmanyfrontlinejobs.

LO8Explainhowtobuildhighperformanceservicedeliveryteams.

LO9Knowhowtomotivateandenergizeserviceemployeessothattheywill
deliverserviceexcellenceandproductivity.

LO10Understandtheroleofserviceleadershipandcultureindevelopingpeople
forserviceadvantage.
Enjoy Safari? Subscribe Today

Figure11.1.Awaitressprideinherprofessionalismearnsheradmiration
andrespectfromcustomersandcoworkers.

OpeningVignette:CoraGriffithTheOutstandingWaitress

CoraGriffithisawaitressfortheOrchardCafatthePaperValleyHotelinAppleton,
Wisconsin.Sheisexcellentinherrole,appreciatedbyfirsttimecustomers,famouswithher
regularcustomers,andadmiredandrespectedbyhercoworkers.Coralovesherworkand
itshows.Sheimplementsthefollowingninerulesofsuccess:
1.TreatCustomersLikeFamily.Firsttimecustomersarenotallowedtofeellike
strangers.Corasmiles,chats,andincludeseveryoneatthetableintheconversation.Sheis
asrespectfultochildrenassheistoadultsandmakesitapointtolearnanduseeveryones
name.Iwantpeopletofeelliketheyresittingdowntodinnerrightatmyhouse.Iwant
themtofeeltheyrewelcome,thattheycangetcomfortable,thattheycanrelax.Idont
justservepeople,Ipamperthem.
2.ListenFirst.Corahasdevelopedherlisteningskillstothepointthatsherarelywrites
downcustomersorders.Shelistenscarefullyandprovidesacustomizedservice:Arethey
inahurry?Ordotheyhaveaspecialdietorliketheirselectioncookedinacertainway?
3.AnticipateCustomersWants.Sherefillsbeveragesandbringsextrabreadand
butterinatimelymanner.Oneregularcustomer,forexample,wholikeshoneywithher

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

1/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

coffeegetsitwithouthavingtoask.Idontwantmycustomerstohavetoaskfor
anything,soIalwaystrytoanticipatewhattheymightneed.
4.SimpleThingsMaketheDifference.Shemanagesthedetailsofherservice,keeps
trackofthecleanlinessoftheutensilsandtheircorrectplacement.Thefoldfornapkinsmust
bejustright.Sheinspectseachplateinthekitchenbeforetakingittothetable.She
providescrayonsforsmallchildrentodrawpictureswhilewaitingforthemeal.Itsthe
littlethingsthatpleasethecustomer.
5.WorkSmart.Corascansallhertablesatonce,lookingforopportunitiestocombine
tasks.Neverdojustonethingatatime.Andnevergofromthekitchentothediningroom
emptyhanded.Takecoffeeoricedteaorwaterwithyou.Whensherefillsonewaterglass,
sherefillsothers.Whenclearingoneplate,sheclearsothers.Youhavetobeorganized,and
youhavetokeepintouchwiththebigpicture.
6.KeepLearning.Coramakesitanongoingefforttoimproveexistingskillsandlearn
newones.

7.SuccessIsWhereYouFindIt.Coraissatisfiedwithherwork.Shefindssatisfaction
inpleasinghercustomers,andsheenjoyshelpingotherpeopleenjoy.Herpositiveattitude
isapositiveforceintherestaurant.Ifcustomerscometotherestaurantinabadmood,Ill
trytocheerthemupbeforetheyleave.Herdefinitionofsuccess:Tobehappyinlife.
8.AllforOne,OneforAll.Shehasbeenworkingwithmanyofthesamecoworkersfor
morethaneightyears.Theteamsupportsoneanotheronthecrazydayswhen300
conventioneerscometotherestaurantforbreakfastatthesametime.Everyonehelpsout.
Thewaitstaffcoverforoneanother,themanagersbusthetables,andthechefsgarnishthe
plates.Wearelikealittlefamily.Weknoweachotherverywellandwehelpeachother
out.Ifwehaveacrazyday,Illgointhekitchentowardstheendoftheshiftandsay,Man,
Imjustproudofus.Wereallyworkedhardtoday.
9.TakePrideinYourWork.Corabelievesintheimportanceofherworkandinthe
needtodoitwell.Idontthinkofmyselfasjustawaitress...Ivechosentobeawaitress.
Imdoingthistomyfullpotential,andIgiveitmybest.Itellanyonewhosstartingout:
takeprideinwhatyoudo.Youreneverjustananything,nomatterwhatyoudo.Yougive
ityourall...andyoudoitwithpride.
CoraGriffithisasuccessstory.Sheisloyaltoheremployeranddedicatedtohercustomers
andcoworkers.Sheisproudofbeingawaitress,proudoftouchinglives.SaysCora,I
havealwayswantedtodomybest.However,theownersreallyaretheoneswhotaught
mehowimportantitistotakecareofthecustomerandwhogavemethefreedomtodoit.
Thecompanyalwayshaslistenedtomyconcernsandfollowedup.HadInotworkedforthe
OrchardCaf,Iwouldhavebeenagoodwaitress,butIwouldnothavebeenthesame
waitress.

Service Employees Are Extremely Important

LO1
Explainwhyserviceemployeesaresoimportanttothesuccessofafirm.
Highlycapableandmotivatedpeopleareatthecenterofserviceexcellenceand
productivity.CoraGriffininourOpeningVignetteisapowerfuldemonstrationofafrontline
employeedeliveringserviceexcellenceandproductivityand,atthesametime,havinghigh
jobsatisfaction.ManyofthetopicsinCoraGriffinsninerulesofsuccessaretheresultof
goodHRstrategiesforservicefirms.Afterreadingthischapter,youwillknowhowtoget
HRrightinservicefirms,andhowtogetsatisfied,loyal,motivated,andproductiveservice

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

2/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

employees.
Fromacustomersperspective,theencounterwithservicestaffisprobablythemost
importantaspectofaservice.Fromthefirmsperspective,theservicelevels,andtheway
serviceisdeliveredbyfrontlinepersonnelcanbeanimportantsourceofdifferentiationas
wellascompetitiveadvantage.Butwhyareserviceemployeessoimportanttocustomers
andthefirmscompetitivepositioning?Thisisbecausethefrontline:
Isacorepartoftheproduct.Often,serviceemployeesarethemostvisibleelement
oftheservice.Theydelivertheserviceandaffectservicequalitygreatly.
Istheservicefirm.Frontlineemployeesrepresenttheservicefirm,and,froma
customersperspective,theyarethefirm.
Isthebrand.Frontlineemployeesandtheservicetheyprovideareoftenacorepartof
thebrand.Itistheemployeeswhodeterminewhetherthebrandpromiseisdelivered.
Affectssales.Servicepersonnelareoftenextremelyimportantforgeneratingsales,
crosssales,andupsales.
Determinesproductivity.Frontlineemployeeshaveheavyinfluenceonthe
productivityoffrontlineoperations.
Furthermore,frontlineemployeesplayakeyroleinanticipatingcustomersneeds,
customizingtheservicedelivery(Figure11.2),andbuildingpersonalizedrelationshipswith
customers.

Whentheseactivitiesareperformedeffectively,itshouldleadtocustomer

loyalty.ThestoryofCoraGriffithandmanyothersuccessstoriesofhowemployeesputting
intheextraefforthavemadeadifferenceandstrengthenthebeliefthathighlymotivated
peopleareatthecoreofserviceexcellence.

Increasingly,theyareakeyfactorin

creatingandmaintainingcompetitivepositioningandadvantage.

Figure11.2.Servicepersonnelrepresentthefirmandoftenbuildpersonal
relationshipswiththeircustomers.

The Frontline in Low-Contact Services

Muchresearchinservicemanagementrelatestohighcontactservices.However,many
servicesaremovingtowardusinglowcontactdeliverychannelssuchascallcenters,where
contactisvoicetovoiceratherthanfacetoface.Agrowingnumberoftransactionsno
longereveninvolvefrontlinestaff.Asaresult,alargeandincreasingnumberofcustomer
contactemployeesworkbytelephoneoremail,nevermeetingcustomersfacetoface.So,
arefrontlineemployeesreallythatimportantforsuchservices?
Mostpeopledonotcalltheservicehotlineorvisittheservicecenteroftheirmobile
operatororcreditcardcompanymorethanonceortwiceayear.Howevertheseoccasional
serviceencountersarethemomentsoftruththatdriveacustomersperceptionsofthe
servicefirm(seeFigure11.3).Also,itislikelythattheseinteractionsareaboutservice
problemsandspecialrequests.Theseveryfewinstancesofcontactdeterminewhethera
customerthinks,Yourcustomerserviceisexcellent!WhenIneedhelp,Icancallyou,and
thisisoneimportantreasonwhyIbankwithyou,orYourservicestinks.Idontlike
interactingwithyou,andIamgoingtoswitchawayfromyourbankatthenextopportune
moment!

Figure11.3.Thepleasantpersonalityofcallcenterstaffcanresultina
positivemomentoftruth,whereafirmsservicequalitywillbeviewed
positively.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

3/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Therefore,theservicedeliveredbythefrontline,whetheritisfacetoface,eartoear,or
viaemail,Twitter,orchat,ishighlyvisibleandimportanttocustomers,andisacritical
componentofaservicefirmsmarketingstrategy.

Frontline Work Is Difficult and Stressful

Theserviceprofitchainneedshighperforming,satisfiedemployeestoachieveservice
excellenceandcustomerloyalty(seeChapter15foradetaileddiscussion).However,these
customerfacingemployeesworkinsomeofthemostdemandingjobsinservicefirms.
Perhapsyouhaveworkedinoneormoreofsuchjobs,whicharecommoninthehealth
care,hospitality,retailing,andtravelindustries.Thereisastorythathasbeenvirally
passedfromonepersontoanother,aboutaJetBlueflightattendantwhoabruptlyquithis
jobafter28yearsasaflightattendant.Apparently,hewasfedupwithadifficultpassenger
withabagproblem,whohadswornathim.Hescoldedthepassengerpubliclyoverthe
airplaneintercom,announcedthathehadhadenough,andopenedtheemergencyslideto
getofftheplane.

Thisisanexampleofhowstresscanaffectapersonatwork.Lets

discussthemainreasonswhythesejobsaresodemanding.Youcanrelatethesetoyour
ownexperiences,whilerecognizingthattheremaybedifferencesbetweenworkingpart
timeforshortperiodsandfulltimeasacareer.
LO2
Understandthefactorsthatmaketheworkoffrontlinestaffsodemandingandoften
difficult.

Boundary Spanning
Theorganizationalbehaviorliteraturereferstoserviceemployeesasboundaryspanners.
Theylinktheinsideofanorganizationtotheoutsideworld.Becauseofthepositionthey
occupy,theirrolefrequentlypullstheminoppositedirections,sotheyoftenexperiencerole
conflict,andasaresult,rolestress.Letuslookatthesourcesofroleconflictinmoredetail.

Sources of Role Conflict

Therearethreemaincausesofrolestressinfrontlinepositions:(1)organization/client,(2)
person/role,and(3)interclientconflicts.
Organization/Client Conflict

Customercontactpersonnelarerequiredtomeetbothoperationalandmarketinggoals.
Theyareexpectedtodelightcustomers(whichtakestime),andyettheyalsohavetobe
fastandefficientatoperationaltasks.Inaddition,theyareoftenexpectedtodoselling,
crossselling,andupselling,too.Forinstance,itiscommontohearcustomercontact
personnelsuggest:Nowwouldbeagoodtimetoopenaseparateaccounttosaveforyour
childrenseducation,orForonly$25morepernight,youcanupgradetotheexecutive
floor.
Finally,sometimestheymustmakesurethatthecompanyspricingisfollowed,evenif
thatmightbeindirectconflictwithcustomersatisfaction(e.g.,Iamsorry,butwedont
serveicewaterinthisrestaurant,butwehaveanexcellentselectionofstillandcarbonated
mineralwaters,orIamsorry,butwecannotwaivethefeeforthebouncedcheckforthe
thirdtimethisquarter.)Thistypeofconflictisalsocalledthetwobossesdilemma,
whereserviceemployeeshavetheunpleasantchoiceofwhethertosticktothecompanys
rulesortosatisfycustomerdemands.Theproblemisespeciallybadinorganizationsthat
arenotcustomeroriented.
Person/Role Conflict

Servicestaffmayhaveconflictsbetweenwhattheirjobrequiresandtheirown
personalities,selfperception,andbeliefs.Forexample,thejobmayrequirestafftosmile
andbefriendlyeventorudecustomers(seealsothesectiononjaycustomersinChapter12).
V.S.MaheshandAnandKasturinotefromtheirconsultingworkwithserviceorganizations
aroundtheworldthatthousandsoffrontlinestaff,whenasked,usuallydescribecustomers
whocauseproblemsasoverdemanding,unreasonable,refusetolisten,alwayswant
everythingtheirway,immediately,andalsoarrogant.

Providingqualityservicerequiresanindependent,warm,andfriendlypersonality.These
traitsaremorelikelytobefoundinpeoplewithhigherselfesteem.However,many
frontlinejobsareseenaslowleveljobs,whichrequirelittleeducation,offerlowpay,and
verylittlecareeradvancement.Ifafirmcannotmoveawayfromthisimage,frontlinejobs
maynotbesimilartostaffsselfperceptionandleadtoperson/roleconflicts.
Inter-client Conflict

Conflictsbetweencustomersarenotuncommon(e.g.,smokinginnonsmokingsections,
jumpingqueues,talkingonacellphoneinamovietheater,orbeingexcessivelynoisyina
restaurant).Itisusuallytheservicestaffwhoareaskedtotellthecustomertobehave.This
isastressfulandunpleasanttask,asitisdifficultandoftenimpossibletosatisfybothsides.
Althoughemployeesmayexperienceconflictandstress,theyarestillexpectedtosmileand
befriendlytowardcustomers.Wecallthisemotionallabor,which,initself,isanimportant
causeofstress.Letuslookatemotionallaborinmoredetailinthenextsection.

Emotional Labor
ThetermemotionallaborwasfirstusedbyArlieHochschildinherbookTheManaged
Heart.

Emotionallaboroccurswhenthereisagapbetweenthewayfrontlinestafffeel

insideandtheemotionsthatmanagementrequiresthemtodisplaytotheircustomers.
Frontlinestaffareexpectedtobecheerful,friendly,compassionate,sincere,oreven
humble.Althoughsomeservicefirmsmakeanefforttorecruitemployeeswithsuch
characteristics,therewilldefinitelybesituationswhenemployeesdonotfeelsuchpositive
emotions,yetarerequiredtohidetheirtruefeelingsinordertomeetcustomer
expectations(Figure11.4).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

4/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.4.Emotionallaborandforcedsmilescanbedifficultforservice
employees.

Thestressofemotionallaborisnicelyshowninthefollowingstory:Aflightattendantwas
approachedbyapassengerwithLetshaveasmile.SherepliedwithOkay.Illtellyou
what,firstyousmileandthenIllsmile,okay?Hesmiled.Good,shesaid.Nowholdthat
foreighthours,andwalkedaway.Figure11.5capturesemotionallaborinairlineindustry.

Figure11.5.Airlinestafffacestressofemotionallaborduetohigh
expectationofthecustomers.

Firmsneedtobeawareofongoingemotionalstressamongtheiremployees

andmake

surethattheiremployeesaretrainedtodealwithemotionalstressandcopewithpressure
fromcustomers.Ifnot,employeeswilluseavarietyofwaystoresistthestressof
8

emotionallabor.

Forexample,becauseofSingaporeAirlinesreputationforservice

excellence,itscustomerstendtohaveveryhighexpectationsandcanbeverydemanding.
Thisputsalotofpressureonitsfrontlineemployees.Thecommercialtrainingmanagerof
SingaporeAirlines(SIA)explained,
Wehaverecentlyundertakenanexternalsurveyanditappearsthatmoreofthe
demandingcustomerschoosetoflywithSIA.Sothestaffarereallyunderalotof
pressure.Wehaveamotto:IfSIAcantdoitforyou,nootherairlinecan.Sowe
encouragestafftotrytosortthingsoutandtodoasmuchastheycanforthecustomer.
Althoughtheyareveryproudandindeedprotectiveofthecompany,weneedtohelpthem
dealwiththeemotionalturmoilofhavingtohandletheircustomerswelland,atthesame
time,feeltheyrenotbeingtakenadvantageof.Thechallengeistohelpourstaffdealwith
difficultsituationsandtakethebrickbats.Thiswillbethenextthrustofourtraining
programs.

Cycles of Failure, Mediocrity, and Success

Afterhavingdiscussedtheimportanceoffrontlineemployeesandhowdifficulttheirworkis,
letslookatthebigpictureofhowpoor,mediocre,andexcellentfirmssetuptheirfrontline
employeesforfailure,mediocrity,orsuccess.Alltoooften,badworkingenvironmentsare
connectedtoterribleservice,withemployeestreatingcustomersthewaytheirmanagers
treatthem.Businesseswithhighemployeeturnoverareoftenstuckinwhathasbeen
termedtheCycleofFailure.Others,whichofferjobsecuritybutareheavilyruleand
procedurebased,maysufferfromanequallyundesirableCycleofMediocrity.However,if
managedwell,thereispotentialforavirtuouscycleinserviceemployment,calledthe
10

CycleofSuccess.
LO3

Describethecyclesoffailure,mediocrity,andsuccessinHRforservicefirms.

The Cycle of Failure

Inmanyserviceindustries,thesearchforproductivityleadstosimplifyingworkprocesses
andpayingthelowestpossiblewages.Suchemployeesperformrepetitivetasksthatneed
littleornotraining.Amongconsumerservices,gasstations,fastfoodrestaurants,andcall
centeroperationsareoftenexamplesofthismindset(althoughthereareexceptions).The
CycleofFailurecapturestheeffectofsuchastrategy.Therearetwoseparatecycles,but
theyaffecteachother.Oneinvolvesfailureswithemployees,andthesecond,with
customers(Figure11.6).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

5/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Source:FromMITSloanManagementReview.Copyright1991by
MassachusettesInstituteofTechnology.Allrightsreserved.Distributedby
TribuneMediaServices.
Figure11.6.TheCycleofFailure.

Theemployeecycleoffailurebeginswithanarrowdesignofjobsforlowskilllevels.There
isanemphasisonrulesratherthanservice,andtechnologyisusedtocontrolquality.Low
wagesarepaid,andthereislittleinvestmentinemployeeselectionandtraining.Asa
result,thereareboredemployeeswholacktheabilitytorespondtocustomerproblems.
Theythenbecomedissatisfiedanddevelopapoorserviceattitude.
Theresultsforthefirmarelowservicequalityandhighemployeeturnover.Becauseoflow
profitmargins,thecyclerepeatsitselfwiththehiringofmorelowpaidemployeestowork
inthesameunrewardingmanner(Figure11.7).Someservicefirmscanreachsuchlow
levelsofemployeemoralethatfrontlinestaffengageinservicesabotageasdescribedin
11

ServiceInsights11.1.

Figure11.7.Employeesinthecycleoffailureareboredanddissatisfied.

Thecustomercycleoffailurebeginswithrepeatedemphasisonattractingnewcustomers.
Sincetheemployeesaredissatisfied,thecustomersbecomedissatisfiedwithemployee
performance.Highstaffturnovermeansthatcustomersarealwaysservedbynewfaces,so
thereisnocontinuity.Becausethesecustomersfailtobecomeloyaltothesupplier,they
turnoverasquicklyasthestaff,requiringanongoingsearchfornewcustomerstomaintain
salesvolume.
Managersmakemanyexcusesforallowingthecycleoffailuretocontinue.Mostarefocused
onemployees:
Youjustcantgetgoodpeoplenowadays.
Peopletodayjustdontwanttowork.
Togetgoodpeoplewouldcosttoomuchandyoucantpassonthesecostincreasesto
customers.
Itsnotworthtrainingourfrontlinepeoplewhentheyleaveyousoquickly.
Highturnoverissimplyaninevitablepartofourbusiness.Youvegottolearntolivewith
12

it.

Manymanagersignorethelongtermfinancialeffectsoflowpay/highturnoverhuman
resourcestrategies.Theyoftenfailtomeasurethreekeycostvariables:(1)thecostof
constantlyrecruiting,hiring,andtraining(2)thelowerproductivityofinexperiencednew
workersand(3)thecostsofhavingtoalwaysattractnewcustomers(whichrequires
extensiveadvertisingandpromotionaldiscounts).Italsoignorestworevenuevariables:
futurerevenueifthecustomerhadstayedloyaltothebrandandincomefrompotential
customerswhoareturnedoffbynegativewordofmouth.

The Cycle of Mediocrity

TheCycleofMediocrityismostlikelytobefoundinlargeorganizationsthatoperateonlots
ofrulesandprocedures(Figure11.9).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

6/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.8.Examplesofservicesabotage.

Source:ChristopherLovelock,Managingservices:Thehumanfactor.InW.J.
GlynnandJ.G.Barnes,UnderstandingServiceManagement228,Chichester,
(UK)JohnWiley&Sons.
Figure11.9.TheCycleofMediocrity.

Insuchenvironments,servicedeliverystandardstendtoberulebased.Serviceis
standardized,andtheemphasisisonachievingoperationalefficiencies.Jobresponsibilities
arenarrowlydefined,andcategorizedbygradeandscopeofresponsibilities.Theunionsalso
haveworkrules.Salaryincreasesandpromotionsarelargelybasedonhowlongtheperson
hasbeenworkinginthecompany.Successfulperformanceinajobisoftenmeasuredbylack
ofmistakesratherthanbyhighproductivityoroutstandingcustomerservice.Training
focusesonlearningtherulesandthetechnicalaspectsofthejob,notonimproving
relationshipswithcustomersandcoworkers.Sinceemployeesaregivenverylittlefreedom
todotheirworkinthewaytheythinkisnecessaryorsuitable,jobstendtobeboringand
repetitive(Figure11.10).However,unliketheCycleofFailure,mostpositionsprovide
adequatepayandoftengoodbenefits,combinedwithhighsecurity.Thus,employeesare
reluctanttoleave.

Figure11.10.Employeesinthecycleofmediocrityarenotveryproductive
andmotivated.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

7/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

ServiceInsights11.1:ServiceSabotagebytheFrontline

Thenexttimeyouaredissatisfiedwiththeserviceprovidedbyaservice
employeeinarestaurant,forexampleitsworthpausingforamomentto
thinkabouttheconsequencesofcomplainingabouttheservice.Youmight
justbecometheunknowingvictimofamaliciouscaseofservicesabotage,
suchashavingsomethingunhygienicaddedtoonesfood.
Thereisactuallyafairlyhighincidenceofservicesabotagebyfrontline
employees.LloydHarrisandEmmanuelOgbonnafoundthat90%ofthem
acceptedthatfrontlinebehaviorwithmaliciousintenttoreduceorspoilthe
serviceservicesabotageisaneverydayoccurrenceintheirorganizations.
HarrisandOgbonnaclassifyservicesabotagealongtwodimensions:covert
overt,androutinizedintermittentbehaviors.Covertbehaviorsareconcealed
fromcustomers,whereasovertactionsarepurposefullydisplayedoftentoco
workersandalsotocustomers.Routinizedbehaviorsareingrainedintothe
culture,whereasintermittentactionsaresporadicandlesscommon.Some
trueexamplesofservicesabotageclassifiedalongthesetwodimensions
appearinFigure11.8.
Source:LloydC.HarrisandEmmanuelOgbonna,ExploringService
Sabotage:TheAntecedents,Types,andConsequencesofFrontline,
Deviant,AntiserviceBehaviors,JournalofServiceResearch4,no.3
(2002):163183.

Customersfindsuchorganizationsfrustratingtodealwith.Therearemanyrules,thereisa
lackofserviceflexibility,andemployeesaregenerallyunwillingtomakeanefforttoserve
customerswell.Thereislittleincentiveforcustomerstocooperatewiththeorganizationto
achievebetterservice.Whentheycomplaintoemployeeswhoarealreadyunhappy,the
poorserviceattitudebecomesworse.However,customersoftenremainwiththe
organization,asthereisnowhereelseforthemtogo.Thiscouldeitherbebecausethe
serviceproviderholdsamonopoly,orbecauseallotheravailableplayersareseenasbeing
equallybadorworse.

The Cycle of Success

Somefirmstakealongertermviewoffinancialperformance,seekingtoprosperby
investingintheirpeopleinordertocreateaCycleofSuccess(Figure11.11).

Source:FromMITSloanManagementReview.Copyright1991by
MassachusettesInstituteofTechnology.Allrightsreserved.Distributedby
TribuneMediaServices.
Figure11.11.TheCycleofSuccess.

Aswithfailureormediocrity,successappliestobothemployeesandcustomers.Betterpay
andbenefitsattractgoodqualitystaff.Broadenedjobscopesareaccompaniedbytraining
andempowermentpracticesthatallowfrontlinestafftocontrolquality.Withmorefocused
recruitment,intensivetraining,andbetterwages,employeesarelikelytobehappierin
theirworkandprovidehigherqualityservice.Thelowerturnovermeansthatregular
customersappreciatethecontinuityinservicerelationshipsandaremorelikelytoremain
loyal.Withgreatercustomerloyalty,profitmarginstendtobehigher.Theorganizationis
freetofocusitsmarketingeffortsonstrengtheningcustomerloyaltythroughcustomer
retentionstrategies.
ApowerfuldemonstrationofafrontlineemployeeworkingintheCycleofSuccessis
waitressCoraGriffin(featuredintheOpeningVignetteofthischapter).Evenpublicservice
organizationsinmanycountriesareincreasinglyworkingtowardcreatingtheirowncycles
13

ofsuccess,andofferingtheirusersgoodqualityserviceatalowercosttothepublic.

Whenwelookatthethreecycles,itis,ofcourse,idealforfirmstobeoperatingunderthe
conditionsintheCycleofSuccess.However,firmsoperatingundertheothertwocyclescan
stillsurviveifsomeelementoftheirofferingmeetscustomerexpectations.Forexample,in
arestaurantcontext,customersmaybedissatisfiedwiththeserviceprovidedbythestaff,
butiftheyarewillingtoacceptitbecausetheyliketherestaurantsqualityoffood,then
thatelementhasmettheirexpectations.Nevertheless,forlongrunprofitabilityand
success,firmsshouldideallymovetowardtheCycleofSuccess.

Human Resource ManagementHow to Get It Right?

AnymanagerwhothinkslogicallywouldliketooperateintheCycleofSuccess.Butwhat
strategieswillhelpservicefirmstomoveinthatdirection?Figure11.12showstheService
TalentCycle,whichisourguidingframeworkforsuccessfulHRpracticesinservicefirms.We
willdiscusstherecommendedpracticesonebyoneinthissection.

LO4
UnderstandthekeyelementsoftheServiceTalentCycleandknowhowtogetHRrightin
servicefirms.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

8/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.12.TheServiceTalentCycle.

Hire the Right People

Employeeeffortisastrongdriverofcustomersatisfactionoverandaboveemployee
14

satisfaction. Therefore,itisimportanttohiretherightemployees.AsJimCollinssaid,
TheoldadagePeoplearethemostimportantassetiswrong.Therightpeopleareyour
mostimportantasset.Wewouldliketoadd:...andthewrongpeoplearealiabilitythat
isoftendifficulttogetridof.Hiringtherightpeopleincludescompetingforapplications
fromthebestemployeesinthelabormarket,thenselectingthebestcandidatesforthe
specificjobstobefilledfromthispool.
LO5
Knowhowtoattract,select,andhiretherightpeopleforservicejobs.
Be the Preferred Employer

Tobeabletoselectandhirethebestpeople,theyfirsthavetoapplyforajobwithyouand
thenacceptyourjobofferinpreferencetooffers.Thatmeansafirmhastofirstcompetefor
talentmarketshare,orasglobalconsultingfirmMcKinsey&Companycallsit,thewarfor
15

talent. Inordertoeffectivelycompeteinthelabormarket,afirmhastobeattractivefor
potentialemployees.Thisincludeshavingagoodimageinthecommunityasaplaceto
work,anddeliveringhighqualityproductsandservicesthatmakeemployeesfeelproudto
bepartoftheteam.Toppeopleexpectaboveaveragepackages.Inourexperience,ittakes
asalaryintherangeofthe60thto80thpercentileofthemarkettoattracttopperformers
totopcompanies(Figure11.13).SeeServiceInsights11.2onhowGooglehasmanaged,for
thelastfewyears,toremainoneofthebestcompaniesintheworldtoworkfor.

Figure11.13.Afirmdoesnotneedtopaytopdollarstoattracttop
performers.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

9/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

ServiceInsights11.2:Google,thePreferredEmployer

Googlewasvotednumber1inFortunes100BestCompaniestoWorkforin
2008,andcontinuestorankveryhighlyonthatlist.Sotheimmediate
questiononpeoplesmindswillbe:Why?WhatmakesGoogleoneofthe
best?Whatkindofculturedoesthecompanyhave?Whatkindofbenefitsdo
itsemployeesenjoy?Whatareitsemployeeslike?
EmployeesofGooglearecalledGooglers.Theyarewidelyperceivedasfun
lovingandinterestingpeople.Atthesametime,whenitcomestowork,they
areachievementorientedanddriven.Googlehasacultureofbeing
innovative,unconventional,different,andfun,andinlinewiththis,its
employeesaregiventhefreedomtoworkindependently.Googles
experiencethusfarsuggeststhatpamperingemployeesactuallyresultsin
increasedproductivityandprofitability.Certainly,Googlersseemwillingto
worklonghoursforthecompany.
WhatkindofbenefitsdoGooglersenjoy?Thelistislong,buttoponthelist
isgourmetfoodforfree,andfoodisjusttheappetizer!Atthecompanys
headquartersinMountainView,California,thecampusoffersmanyfree
amenities,includingWiFienabledshuttlebuses,motorizedscooterstoget
around,carwashes,andoilchanges.IfGooglersareinterestedinbuying
hybridcars,theygeta$5,000subsidyforthat.Googlershavefivefreeonsite
doctors,unlimitedsickdays,freeflushots,agymtoworkoutat,andapoolto
dolapswithlifeguardsonduty.Formoredomesticactivities,therearefree
onsitelaundryservicesoronecandropofftheirlaundryatthedrycleaners.
Therearealsochildcareservices,andpetsarewelcomeattheworkplaceon
atemporarybasis.Forleisureandsports,onecanplayagameofpool,do
somerockclimbingonthewall,orplayagameofvolleyballatthebeach
volleyballpit.Thelistgoeson.Asaresult,Googlerscanspendlongand
productivehoursatwork.However,itmustbenotedthatthebenefitsoffered
toemployeesworkingatotherGoogleofficestendtobelesssignificant.
GooglehasanewengineeringheadquartersinZurich,Switzerland.This
buildingwaspartlydesignedbytheengineerswhoworkthere.Lifethereis
justasfun.TherearemeetingplacesthataredesignedtolooklikeSwiss
chaletsandigloos.Peoplecangetfromonefloortoanotherusingfireman
poles,andthereisaslidethatallowsthemtoreachthecafeteriaveryquickly.
Thereareotherareaslikeagamesroom,alibrarywitharchitectureinthe
styleofanEnglishcountryhouse,andanaquariumwherestaffcanlieina
bathofredfoamandgazeatfishiftheyfeelstressedout.

TheGoogleCampus,MountainView,California

Becausethefirmisseenassuchadesirableplacetoworkin,itcanbe
extremelyselectiveinitsrecruiting,hiringonlythebestandthebrightest.
Thismayworkparticularlywellforitsengineers,whotendtogetthemost
kudos.However,despitethecompanysstellarreputationasanemployer,
someobserversquestionwhetherthisverypositiveenvironmentcanbe
maintainedasthecompanygrowsanditsworkforcematures.

Theslidegetspeopletothecafeteriaquickly

Sources:AdamLashinskyGoogleIsNo.1:SearchandEnjoy100
BestCompaniestoWorkFor:LifeInsideGoogleThePerksofBeinga
Googler,Fortune,January10,2007InsidetheGoogleplex,The
Economist,September1,2007RobertLeveringandMiltonMoskowitz
100BestCompaniestoWorkfor2008:Top50Employers,January22,
2008,
http://money.cnn.com/galleries/2008/fortune/0801/gallery.bestcos_top50.fortune/index.html
(http://money.cnn.com/galleries/2008/fortune/0801/gallery.bestcos_top50.fortune/index.html) ,

accessedMarch12,2012
http://money.cnn.com/magazines/fortune/bestcompanies/2011/
(http://money.cnn.com/magazines/fortune/bestcompanies/2011/) ,accessedMarch12,

2012JaneWakefield,GoogleYourWaytoaWackyOffice,BBCNews
Website,March13,2008,
http://news.bbc.co.uk/1/hi/technology/7290322.stm
(http://news.bbc.co.uk/1/hi/technology/7290322.stm) ,accessedMarch12,2012.

Select the Right People

Theresnosuchthingastheperfectemployee(Figure11.14).Differentpositionsareoften
bestfilledbypeoplewithdifferentskillsets,styles,andpersonalities.Forexample,The
WaltDisneyCompanyassessesprospectiveemployeesintermsoftheirpotentialforon
stageorbackstagework.Onstageworkers,knownascastmembers,aregiventothose

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

10/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

peoplewiththeappearance,personalities,andskillstomatchthejob.

Figure11.14.Theresnosuchthingasaperfectemployee.

Whatmakesoutstandingserviceperformerssospecial?Often,itisthingsthatcannotbe
taught.Itisthepeoplesnaturalqualities,whichtheywouldbringwiththemtoany
employer.Thelogicalconclusionisthatservicefirmsshoulddevotegreatcaretoattracting
andhiringtherightcandidates.Increasingly,thetopcompaniesareusingemployee
analyticstoimprovetheirabilitytoattractandretainthebesttalent.Employeeanalytics
aresimilartocustomeranalytics.Forexample,itisusedtopredictwhowouldbeabetter
performer.Servicefirmscanalsouseemployeeanalyticstoplacetherightemployeesin
16

therightjob. Apartfromthepurposeofdataanalysis,letsnextreviewsometoolsthat
canhelpyouidentifytherightcandidatesforagivenfirmandjob,andperhapsevenmore
importantly,rejectthosecandidateswhodonotfit.

Tools to Identify the Best Candidates

Excellentservicefirmsuseanumberofmethodstoidentifythebestcandidatesintheir
applicantpool.Theseapproachesincludeinterviewingapplicants,observingbehavior,
17

conductingpersonalitytests,andprovidingapplicantswitharealisticjobpreview.
Use Multiple, Structured Interviews

Toimprovehiringdecisions,successfulrecruitersliketousestructuredinterviewsbuilt
aroundjobrequirementsandtousemorethanoneinterviewer.Peopletendtobemore
carefulintheirjudgmentswhentheyknowthatanotherindividualisalsojudgingthesame
applicant.Anotheradvantageofusingtwoormoreinterviewersisthatitreducestheriskof
similartomebiasthatwealllikepeoplewhoaresimilartoourselves(Figure11.15).

Figure11.15.Isthesimilartomebiascomingintoplay?

Observe Candidate Behavior

Thehiringdecisionshouldbebasedonthebehaviorthatrecruitersobserve,notjustthe
wordstheyhear.AsJohnWoodensaid,Showmewhatyoucando.Donttellmewhatyou
18

cando.Toooften,thebigtalkersarethelittledoers. Behaviorcanbedirectlyor
indirectlyobservedbyusingbehavioralsimulationsorassessmentcentertests.Also,past
behavioristhebestpredictoroffuturebehavior.Hirethepersonwhohaswonservice
excellenceawards,receivedmanycomplimentaryletters,andhasgreatreferencesfrom
pastemployers(Figure11.16).

Figure11.16.Referencesareagoodwaytoassesspastbehavior.

Conduct Personality Tests

19

Manymanagershireemployeesbasedonpersonality. Personalitytestshelptoidentify
measurabletraitsthatarerelatedtoaparticularjob,suchasawillingnesstotreat
customersandcolleagueswithcourtesy,consideration,andtactsensitivitytocustomer
needsandtheabilitytocommunicateaccuratelyandpleasantly.Researchhasalsoshown
thatcertaintraitslikebeinghardworkingandthebeliefinonescapabilitiestomanage
20

situationstendtoresultinstrongemployeeperformanceandservicequality. Hiring
decisionsbasedonsuchteststendtobeaccurate,especiallyinidentifyingandrejecting
unsuitablecandidates.
Forexample,theRitzCarltonHotelsGroupusespersonalityprofilesonalljobapplicants.
Employeesareselectedbasedonwhethertheyhaveapersonalitysuitedtoworkingina
servicecontext.Traitssuchasareadysmile,awillingnesstohelpothers,andtheabilityto
multitaskallowemployeestogobeyondlearnedskills.AnapplicanttoRitzCarltonshared
herexperienceofgoingthroughthepersonalitytestforajobasajuniorlevelconciergeat
theRitzCarltonMilleniaSingapore.Herbestadvice:Tellthetruth.Theseareexperts

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

11/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

theywillknowifyouarelying,andthensheadded:
Onthebigday,theyaskedifIlikedhelpingpeople,ifIwasanorganizedperson,andifI
likedtosmilealot.Yes,yes,andyes,Isaid.ButIhadtosupportitwithreallife
examples.This,attimes,feltratherintrusive.Toanswerthefirstquestionforinstance,I
hadtosayabitaboutthepersonIhadhelpedwhysheneededhelp,forexample.Thetest
forcedmetorecalleveninsignificantthingsIhaddone,likelearninghowtosayhelloin
21

differentlanguages,whichhelpedtogetafixonmycharacter.
Give Applicants a Realistic Preview of the Job

Duringtherecruitmentprocess,servicecompaniesshouldinformcandidatesaboutthe
realityofthejob,therebygivingthemachancetotryonthejobandseewhetheritsa
goodfitornot.Atthesametime,recruiterscanobservehowcandidatesrespondtothe
jobsrealities.Somecandidatesmaywithdrawiftheyrealizethejobisnotagoodmatchfor
them.AuBonPain,achainofFrenchbakerycafs,letsapplicantsworkfortwopaiddaysin
acafpriortothefinalselectioninterview.Managerscanobservecandidatesinaction,and
candidatescanassesswhethertheylikethejobandtheworkenvironment(Figure11.17).In
theultimaterecruitmentandinterviewprocess,DonaldTrumpworkedwiththeNBC
networktoproducetherealityTVseries,TheApprentice,wherethewinnerreceivedthe
chancetojointheTrumporganizationandmanageaprojectselectedbyTrumphimself.

Figure11.17.AuBonPainallowscandidatestogetatasteoftherealjob
beforethefinalselectioninterview.

LO6
Explainthekeyareasinwhichserviceemployeesneedtraining.

Train Service Employees Actively

Ifafirmhasgoodpeople,investmentsintrainingcanyieldoutstandingresults.Havinga
goodcareerdevelopmentprogramforemployeescanhelpthemtofeelthattheyare
valuedandtakencareof.Inturn,employeeswillworktomeetcustomersneeds,resulting
22

incustomersatisfaction,loyalty,and,ultimately,profitabilityforthefirm. Service
championsshowastrongcommitmenttotraininginwords,dollars,andaction.Employees
ofAppleretailstores,forexample,aregivenintensivetrainingonhowtointeractwith
customers,howtophrasewordsinapositiveratherthannegativeway,andwhattosay
whencustomersreactemotionally.Employeesaresupposedtohelpcustomerssolve
23

problemsratherthantosell.

Therearemanyaspectsinafirmthatserviceemployeesneedtobetrainedon.Theyneed
tolearn:
Organizationalculture,purpose,andstrategy.Startstrongwithnewhires.Focus
ongettingemotionalcommitmenttothefirmscorestrategy,andpromotecorevalues
suchascommitmenttoserviceexcellence,responsiveness,teamspirit,mutualrespect,
honesty,andintegrity.Usemanagerstoteach,andfocusonwhat,why,andhow
24

ratherthanthespecificsofthejob. Forexample,newrecruitsatDisneylandattendthe
DisneyUniversityOrientation.Itconsistsofadetaileddiscussionofthecompanyshistory
andphilosophy,theservicestandardsexpectedofcastmembers,andacomprehensivetour
25

ofDisneylandsoperations.

Interpersonalandtechnicalskills.Interpersonalskillstendtobegenericacross
servicejobs.Theseincludevisualcommunicationsskillssuchasmakingeyecontact,
attentivelistening,understandingbodylanguage,andevenfacialexpressions.Technical
skillsincludealltherequiredknowledgerelatedtoprocesses(e.g.,howtohandlea
merchandisereturn),machines(e.g.,howtooperatetheterminal,orcashmachine),and
rulesandregulationsrelatedtocustomerserviceprocesses.Bothtechnicaland
interpersonalskillsarenecessarytogether.Neitherskillaloneisenoughtoperformajob
26

well(Figure11.18).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

12/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.18.Aphysiotherapistdisplayingtechnicalcompetence,aswellas
awarmandfriendlysmile.

Product/Serviceknowledge.Knowledgeablestaffareakeyaspectofservicequality.
Theymustbeabletoexplainproductfeatureseffectivelyandalsopositiontheproduct
correctly.AtanAppleretailstore,forexample,alltheproductsareopenlydisplayedfor
customerstotrythemout.Staffmembersneedtobeabletoanswerquestionsaboutanyof
theproductfeatures,usage,andanyotheraspectsofservicelikemaintenance,service
bundles,etc.
Ofcourse,traininghastoresultinobservablechangesinbehavior.Ifemployeesdonot
applywhattheyhavelearned,thentheinvestmentiswasted.Learningisnotonlyabout
becomingsmarterbutalsoaboutchangingbehaviorsandimprovingdecisionmaking.To
achievethis,repeatedpracticeisneeded.
Trainingandlearningprofessionalizesthefrontline.Welltrainedemployeesfeelandactlike
professionals(Figure11.19).Awaiterwhoknowsaboutfood,cooking,wines,dining
etiquette,andhowtoeffectivelyinteractwithcustomers(evencomplainingones),feels
professional,hasahigherselfesteem,andisrespectedbyhiscustomers.Trainingis
thereforeextremelyeffectiveinreducingperson/rolestress.ServiceInsights11.3isagreat
exampleofhowUPYourService!Collegeenablesandenergizesfrontlineemployees.

Figure11.19.AFormulaOnetechnicianbeingbriefedbyhisforeman.

Empower the Front Line

Afterbeingthepreferredemployer,selectingtherightcandidates,andtrainingthemwell,
thenextstepisempoweringthefrontline.Nearlyallexcellentservicefirmshavestoriesof
employeeswhorecoveredfailedservicetransactions,orwenttheextramiletomakea
customersdayoravoidsomekindofdisasterforthatclient(asanexample,seeService
27

Insights11.4EmpowermentatNordstrom). Toallowthistohappen,employeeshaveto
beempowered.Forexample,Nordstromtrainsandtrustsitsemployeestodotheright
thing,andempowersthemtodoso.Itsemployeehandbookhasonlyonerule:Usegood
judgmentinallsituations.Employeeselfdirectionhasbecomeincreasinglyimportant,
especiallyinservicefirms.Thisisbecausefrontlinestaffareoftenontheirownwhenthey
facetheircustomers.Therefore,itisdifficultformanagerstocloselymonitortheir
28

29

behavior. Researchhasalsolinkedhighempowermenttohighercustomersatisfaction.

LO7
Understandwhyempowermentissoimportantinmanyfrontlinejobs.
Researchhasshownthatempowermentismostimportantwhenthefollowingfactorsare
presentwithintheorganizationanditsenvironment:
Thefirmofferspersonalized,customizedserviceandisbasedoncompetitive
differentiation.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

13/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Thefirmhasextendedrelationshipswithcustomersratherthanshorttermtransactions.
Theorganizationusestechnologiesthatarecomplexandnonroutineinnature.
Servicefailuresoftenarenonroutineandcannotbedesignedoutofthesystem.Frontline
employeeshavetorespondquicklytorecovertheservice.
Thebusinessenvironmentisunpredictableandsurprisesaretobeexpected.
Existingmanagersarecomfortablewithlettingemployeesworkontheirownforthe
30

benefitofboththeorganizationanditscustomers.

ServiceInsights11.3:UPYourService!CollegeBuilds

CulturesThatInspirePeopletoExcelinService
Havingaserviceorientedattitudeisnotsomethingthatcomesnaturallyto
everyone,especiallyiftheculturewithintheorganizationdoesnotsupporta
customerfirstmentality.ThisiswhereUPYourService!College(UYSC)
comesin.
Allorganizationscancreateasustainablecompetitiveadvantageby
buildingaSuperiorServiceCulture,notesRonKaufman,authorofthe
bestsellingbookseriesUPYourService!andfounderofUYSC.Headds,A
powerfulservicereputationattractsthebestcustomers,themostloyal
employees,andthehighestindustrymargins.
UYSCcombinescustomerservicetrainingcourseswithculturebuilding
activitiesthatupliftthespiritofservicethroughoutanorganization.This
createsanatmospherewherestaffareinspiredtoexcelinservicedeliveryto
customersandtooneanother.
ThecomprehensiveUYSCcoursecurriculumincludes:
Course100:AchievingSuperiorServiceteachesfundamentalservice
principlestoraiseservicelevelsandimprovethecustomerexperienceat
everypointofcontact.
Course200:BuildingServicePartnershipsdemonstratesthe
importanceofbuildingpowerfulservicepartnershipswithpartnersand
colleagues.
Course300:IncreasingCustomerLoyaltyteacheshowtoincrease
customerloyalty,managecustomerexpectationsandhandlesituations
professionallywhenthingsgowrong.

AnupliftingcourseforemployeesatMicrosoftwithCollege
founderRonKaufmanatthecenter

ThesecoursesarecloselyintegratedwithServiceLeadershipWorkshops,
ServiceMomentumEvents,andServiceCultureBuildingActivities.Unlike
manyothertrainingprograms,UYSCbuildsacommonservicelanguage
throughoutalllevelsoftheorganization,resultingineveryoneapplyingthe
sameserviceprinciplesintheirworkeveryday.Thecoursesarefacilitatedby
certifiedcourseleadersandfeaturevideobasedinstructionsbyRonKaufman
toensureconsistenthighqualitytraining.
Todate,organizationsusingtheUYSCprovencurriculumincludemajor
multinationals,largedomesticcompanies,andgovernmententitiessuchas
DubaiBank,DubaiProperties,ManuLife,Nokia,RiyadhCareHospital,
SingaporeCentralProvidentFund,SingaporeGeneralHospital,Tatweer,
TECOM,Wipro,andXeroxEmirates.
Source:http://www.upyourservice.com/(http://www.upyourservice.com/) and
http://www.ronkaufman.com/(http://www.ronkaufman.com/) ,accessedMarch12,
2012.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

14/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

ServiceInsights11.4:EmpowermentatNordstrom

VanMensah,amensclothessalesassociateatNordstrom,receiveda
disturbingletterfromoneofhisloyalcustomers.Thegentlemanhad
purchasedsome$2,000worthofshirtsandtiesfromMensah,andmistakenly
washedtheshirtsinhotwater.Theyallshrank.Hewaswritingtoask
Mensahsprofessionaladviceonhowheshoulddealwithhissituation(the
gentlemandidnotcomplainandreadilyconcededthemistakewashis).
Mensahimmediatelycalledthecustomerandofferedtoreplacethoseshirts
withnewonesatnocharge.Heaskedthecustomertomailtheothershirts
backtoNordstromatNordstromsexpense.Ididnthavetoaskforanyones
permissiontodowhatIdidforthatcustomer,saidMensah.Nordstrom
wouldratherleaveituptometodecidewhatsbest.
Middlemas,aemployeewhohasbeenwithNordstromforalongtime,says
tootheremployees,Youwillneverbecriticizedfordoingtoomuchfora
customer,youwillonlybecriticizedfordoingtoolittle.Ifyoureeverindoubt
astowhattodoinasituation,alwaysmakeadecisionthatfavorsthe
customerbeforethecompany.NordtromsEmployeeHandbookconfirms
this.Itreads:
WelcometoNordstrom
WeregladtohaveyouwithourCompany.Ournumberonegoalistoprovide
outstandingcustomerservice.
Setbothyourpersonalandprofessionalgoalshigh.Wehavegreat
confidenceinyourabilitytoachievethem.
NordstromRules:
Rule#1:Useyourgoodjudgmentinallsituations.Therewillbeno
additionalrules.
Pleasefeelfreetoaskyourdepartmentmanager,storemanager,ordivision
generalmanageranyquestionatanytime.
Source:RobertSpectorandPatrickD.McCarthy,TheNordstromWay.
NewYork:JohnWiley&Sons,Inc.,2000,1516,95.

Levels of Employee Involvement

Empowermentcantakeplaceatseverallevels:
Suggestioninvolvementempowersemployeestomakerecommendationsthrough
formalizedprograms.McDonalds,forexample,listenscloselytoitsfrontline.Didyouknow
thatinnovationsrangingfromtheEggMcMuffin,tomethodsofwrappingburgerswithout
leavingathumbprintonthebun,wereinventedbyemployees?
Jobinvolvementrepresentsopeningupofjobcontent.Jobsareredesignedtoallow
employeestouseawidervarietyofskills.Tocopewiththeaddeddemandsaccompanying
thisformofempowerment,employeesrequiretraining.Supervisorsneedtobereoriented
fromdirectingthegrouptosupportingitsperformance.
Highinvolvementgiveseventhelowestlevelemployeesasenseofinvolvementinthe
companysoverallperformance.Informationisshared.Employeesdevelopskillsin
teamwork,problemsolving,andbusinessoperations,andtheyparticipateinworkunit
managementdecisions.Thereisprofitsharing,oftenintheformofbonuses.
SouthwestAirlinesisanexampleofahighinvolvementcompany.Ittrustsitsemployees
andgivesthemthefreedomandauthoritytodotheirjobs.Southwestsmechanicsand
pilotsfeelfreetohelprampagentsloadbags.Whenaflightisrunninglate,itisnot
uncommontoseepilotshelpingpassengersinwheelchairstoboardtheaircraft,assisting
operationsagentsbytakingboardingpasses,orhelpingflightattendantscleanthecabin
betweenflights.Inaddition,Southwestemployeesusecommonsense,notrules,whenitis
inthebestinterestsofthecustomer.

LO8
Explainhowtobuildhighperformanceservicedeliveryteams.

Build High-Performance Service-Delivery Teams

Ateamhasbeendefinedasasmallnumberofpeoplewithcomplementaryskillswhoare
committedtoacommonpurpose,setofperformancegoals,andapproachforwhichthey
31

holdthemselvesmutuallyaccountable. Manyservicesrequirepeopletoworkinteams,
oftenacrossfunctionsforwellcoordinateddelivery,especiallywhendifferentindividuals
eachplayspecialistroles.Forexample,healthcareservicesdependheavilyoneffective
teamwork(seeFigure11.20).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

15/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.20.Surgicalteamsworkunderparticularlydemanding
conditions.

Researchconfirmsthatfrontlinestafffeelthelackofinterdepartmentalsupportprevents
32

themfromsatisfyingtheircustomers(Figure11.21). Inmanyindustries,firmsneedto
createcrossfunctionalteamsandgivethemtheauthorityandresponsibilitytoserve
33

customersfromendtoend.Suchteamsarealsocalledselfmanagedteams.

Figure11.21.Lackofcooperationwithinateamwillleadtoproblemsin
thecompany.

Teams,training,andempowermentgohandinhand.SingaporeAirlinesusesteamsto
provideemotionalsupportandtomentoritscabincrew,andthecompanyeffectively
assesses,rewards,andpromotesstaff(seeServiceInsights11.5).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

16/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

ServiceInsights11.5:SingaporeAirlinesTeamConcept

Figure11.22.CabincrewservingintheA380firstclasscabin.

SIAunderstandstheimportanceofteamworkinthedeliveryofservice
excellence.Thisisdifficultbecausemanycrewmembersarescatteredaround
theworld.SIAsansweristheteamconcept.
PohLeongChoo,SeniorManagerforCrewServices,explained:Inorderto
effectivelymanageour6,600crew,wedividethemintoteams,smallunits,
withateamleaderinchargeofabout13people.Wewillrosterthemtofly
togetherasmuchaswecan.Flyingtogether,asaunit,allowsthemtobuild
upcamaraderie,andcrewmembersfeelliketheyarepartofateam,notjust
amember.Theteamleaderwillgettoknowthemwell,theirstrengthsand
weaknesses,andwillbecometheirmentorandtheircounsel,andsomeone
towhomtheycanturntoiftheyneedhelporadvice.Thechecktrainers
oversee12or13teamsandflywiththemwheneverpossible,notonlyto
inspecttheirperformancebutalsotohelptheirteamdevelop.
Theinteractionwithineachoftheteamsisverystrong.Asaresult,whena
teamleaderdoesastaffappraisal,theyreallyknowthestaff.Youwouldbe
amazedhowmeticulousanddetailedeachstaffrecordis.So,inthisway,we
havegoodcontrol,andthroughthecontrol,wecanensurethatthecrew
deliversthepromise.Theyknowthattheyrebeingconstantlymonitoredand
sotheydeliver.Ifthereareproblems,wewillknowaboutthemandwecan
sendthemforretraining.Thosewhoaregoodwillbeselectedforpromotion.
AccordingtoGiamMingToh,SeniorManagerforCrewPerformance,What
isgoodabouttheteamconceptisthat,despitethehugenumberofcrew,
peoplecanrelatetoateamandhaveasenseofbelonging.Thisismy
team.Andtheyareputtogetherforonetotwoyearsandtheyarerostered
togetherforabout6070%ofthetime,sotheydoflytogetherquiteafair
bit.
Source:JochenWirtzandRobertJohnston,SingaporeAirlines:WhatIt
TakestoSustainServiceExcellenceASeniorManagement
Perspective,ManagingServiceQuality13,no.1(2003),1019and
LoizosHeracleous,JochenWirtz,andNitinPangarkar,FlyingHighin
CompetitiveIndustry:SecretsoftheWorldsLeadingAirline.Singapore:
McGrawHill,2009.PhotocourtesyofSingaporeAirlines.Disclaimer:The
informationabovewasobtainedin2009.

Creating Successful Service Delivery Teams

Itsnoteasytomaketeamsworkwell.Skillslikecooperation,listeningtoothers,coaching,
andencouragingoneanotherareneeded.Teammembersmustlearnhowtovoice
differences,telloneanotherhardtruths,andasktoughquestions.Alltheserequiretraining.
Managementalsoneedstosetupastructurethatwillmovetheteamstowardsuccess.To
succeedintheglobaleconomy,managersneedtodoeachofthefollowing:
Identifywhattheteamwillachieve.Definegoalsandsharethemwithteammembers.
Selectteammemberswithcare.Alltheskillsneededtoachievethegoalmustbefound
withintheteam.
Monitortheteamanditsteammembersandprovidefeedback.Thisalignsindividual
goalswiththoseoftheorganization.
Keepteammembersinformedofgoalachievement,updatethem,andrewardthemfor
theirefforts.
34

Coordinatewithothermanagerstoachievetheoverallcompanyobjectives.

Motivate and Energize People

Onceafirmhashiredtherightpeople,trainedthemwell,empoweredthem,andorganized
themintoeffectiveservicedeliveryteams,howcanitensurethattheywilldeliver?Staff
35

performanceisafunctionofabilityandmotivation. Motivatingandrewardingstrong
serviceperformersaresomeofthemosteffectivewaysofretainingthem.Employeeslearn
quicklythatthosewhogetpromotedarethetrulyoutstandingserviceprovidersandthat
thosewhogetfiredarethosethatdonotdeliveratthecustomerlevel(Figure11.23).

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

17/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.23.Rewardingemployeesaccordingtotheirperformancesis
essentialtothesuccessofabusiness.

LO9
Knowhowtomotivateandenergizeserviceemployeessothattheywilldeliverservice
excellenceandproductivity.
Amajorreasonwhyservicebusinessesfailisthattheydonotusethefullrangeofavailable
rewardseffectively.Manyfirmsthinkintermsofmoneyasreward,buttheydoesnotpass
thetestofaneffectivereward.Payingmorethanwhatisseenasfaironlyhasshortterm
motivatingeffects,andwearsoffquickly.Ontheotherhand,bonusesthatdependon
performancehavetobeearnedagainandagain.Therefore,theytendtobemorelastingin
theireffectiveness.Other,morelastingrewardsarethejobcontentitself,recognitionand
feedback,andgoalaccomplishment.
Job Content

Peoplearemotivatedandsatisfiedsimplybyknowingthattheyaredoingagoodjob.This
istrueespeciallyifthejob:
Hasavarietyofdifferentactivities.
Needsthecompletionofwholepiecesofwork.
Hasanimpactonthelivesofothers.
Comeswithfreedomandflexibility.
Isasourceofdirectandclearfeedbackabouthowwellemployeesdidtheirwork(e.g.,
gratefulcustomersandsales).
Feedback and Recognition

Humansaresocialbeings,andtheyliketofeelasenseofbelonging.Thisispossibleifthere
isrecognitionandfeedbackfromthepeoplearoundthem,i.e.,theircolleaguesandbosses.If
employeesreceiverecognitionandarethankedforserviceexcellence,theywillwantto
continueachievingit.Ifcarriedoutwell,staremployeeofthemonthtypeofawardscan
recognizehighperformancesandbehighlymotivating.Feedbackcanalsocomefrom
customers.Employeesarehighlysatisfiedandmotivatedwhentheyworkinjobswhere
theycanmakeapositiveimpactonothers.Hence,puttingemployeesintouchwithend
36

usersandlettingthemhearpositivefeedbackfromcustomerscanbeverymotivating.
Goal Achievement

Goalsfocuspeoplesenergy.Achievingimportantgoalsisarewardinitself.Goalsthatare
specific,difficultbutachievable,andacceptedbythestaffarestrongmotivators(Figure
11.24).Theyresultinhigherperformancethanwithoutgoals,orhavinguncleargoals(e.g.,
doyourbest),orhavinggoalsthatareimpossibletoachieve.Inshort,well
communicatedandmutuallyacceptedgoalsareeffectivemotivators.

Figure11.24.Whenpeoplearefocusedongoalachievement,itwill
motivateandenergizethem.

Service Leadership and Culture

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

18/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Service Leadership and Culture

Sofar,wehavediscussedthekeystrategiesthathelptomoveanorganizationtoward
serviceexcellence.However,totrulygetthere,weneedastrongserviceculturethatis
continuouslyreinforcedanddevelopedbymanagementthatisinlinewiththefirms
37

strategy. Charismaticleadership,alsocalledtransformationalleadership,changesthe
values,goals,andaspirationsofthefrontlinetobeinlinewiththoseofthefirms.Underthis
kindofleadership,staffaremorelikelytodotheirbestandgoaboveandbeyondthecallof
38

duty,becauseitissimilartotheirownvalues,beliefs,andattitudes.
LO10

Understandtheroleofserviceleadershipandcultureindevelopingpeopleforservice
advantage.
LeonardBerryfoundthatsomeofthecorevaluesinexcellentservicefirmsincluded
39

excellence,innovation,joy,teamwork,respect,integrity,andsocialprofit. Thesevalues
arepartofthefirmsculture.Aserviceculturecanbedefinedas:
Sharedperceptionsofwhatisimportantinanorganization.
40

Sharedvaluesandbeliefsofwhythosethingsareimportant.

Inorderforvaluesandbeliefstobesharedbyallemployees,theymayhavetobeinstilled
inthem.Employeesalsohavetobecontinuallyremindedofthis.Forexample,RitzCarlton
translatedthekeyproductandservicerequirementsofitscustomersintotheRitzCarlton
GoldStandards,whichincludeacredo,motto,threestepsofservice,and12servicevalues
(seeServiceInsights11.6).
RitzCarltonsservicevaluesaresplitintodifferentlevels.Servicevalues10,11,and12are
functionalvaluessuchassafety,security,andcleanliness.Thenextlevelofexcellenceis
emotionalengagement,whichcoversvalues4to9.Theyrelatetolearningandprofessional
growthofitsemployees,teamwork,service,problemsolving,servicerecovery,innovation,
andcontinuousimprovement.Beyondtheguestsfunctionalneedsandemotional
engagementisthethirdlevel,whichrelatestovalues1,2,and3andiscalledtheRitz
CarltonMystique.Thislevelaimstocreateunique,memorable,andpersonalguest
experiences,whichRitzCarltonbelievescanonlyoccurwhenemployeesdeliveronthe
guestsexpressedandunexpressedwishesandneeds,andwhentheystrivetobuildlifetime
41

relationshipsbetweenRitzCarltonanditsguests.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

19/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

ServiceInsights11.6:RitzCarltonsGoldStandards

GoldStandards
OurGoldStandardsarethefoundationofTheRitzCarltonHotelCompany,
LLC.Theyencompassthevaluesandphilosophybywhichweoperateand
include:
TheCredo
TheRitzCarltonHotelisaplacewherethegenuinecareandcomfortofour
guestsareourhighestmission.
Wepledgetoprovidethefinestpersonalserviceandfacilitiesforourguests
whowillalwaysenjoyawarm,relaxed,yetrefinedambience.
TheRitzCarltonexperienceenlivensthesenses,instillswellbeing,and
fulfillseventheunexpressedwishesandneedsofourguests.
Motto
AtTheRitzCarltonHotelCompany,LLC,WeareLadiesandGentlemen
servingLadiesandGentlemen.Thismottoexemplifiestheanticipatory
serviceprovidedbyallstaffmembers.
ThreeStepsofService
1.Awarmandsinceregreeting.Usetheguestsname.
2.Anticipationandfulfillmentofeachguestsneeds.
3.Fondfarewell.Giveawarmgoodbyeandusetheguestsname.
http://corporate.ritzcarlton.com/en/about/goldstandards.htm
(http://corporate.ritzcarlton.com/en/about/goldstandards.htm) top

ServiceValues:IAmProudtoBeRitzCarlton
1.IbuildstrongrelationshipsandcreateRitzCarltonguestsforlife.
2.Iamalwaysresponsivetotheexpressedandunexpressedwishesand
needsofourguests.
3.Iamempoweredtocreateunique,memorableandpersonalexperiences
forourguests.
4.IunderstandmyroleinachievingtheKeySuccessFactors,embracing
CommunityFootprintsandcreatingTheRitzCarltonMystique.
5.IcontinuouslyseekopportunitiestoinnovateandimproveTheRitzCarlton
experience.
6.Iownandimmediatelyresolveguestproblems.
7.Icreateaworkenvironmentofteamworkandlateralservicesothatthe
needsofourguestsandeachotheraremet.
8.Ihavetheopportunitytocontinuouslylearnandgrow.
9.Iaminvolvedintheplanningoftheworkthataffectsme.
10.Iamproudofmyprofessionalappearance,language,andbehavior.
11.Iprotecttheprivacyandsecurityofourguests,myfellowemployeesand
thecompanysconfidentialinformation,andassets.
12.Iamresponsibleforuncompromisinglevelsofcleanlinessandcreatinga
safeandaccidentfreeenvironment.
The6thDiamond
Mystique
EmotionalEngagement
Functional
TheEmployeePromise
AtTheRitzCarlton,ourLadiesandGentlemenarethemostimportant
resourceinourservicecommitmenttoourguests.
Byapplyingtheprinciplesoftrust,honesty,respect,integrity,and
commitment,wenurtureandmaximizetalenttothebenefitofeach
individualandthecompany.
TheRitzCarltonfostersaworkenvironmentwherediversityisvalued,quality
oflifeisenhanced,individualaspirationsarefulfilled,andTheRitzCarlton
Mystiqueisstrengthened.

Source:19922006TheRitzCarltonHotelCompany,LLC.AllRights
Reserved.

TimKirkpatrick,DirectorofTrainingandDevelopmentofRitzCarltonsBostonCommon
Hotelsaid,TheGoldStandardsarepartofouruniform,justlikeyournametag.But
42

remember,itsjustalaminatedcarduntilyouputitintoaction. Toreinforcethese
standards,everymorningbriefingincludesadiscussiondirectlyrelatedtothestandards.
TheaimofthesediscussionsistokeeptheRitzCarltonphilosophyatthecentreofits
employeesminds.
Astrongservicecultureisonewheretheentireorganizationunderstandsthatthefrontline
isthelifelineofthebusinessandfocusesonit.Whenfirmshaveapassionforservice,top
managementisinformedofandactivelyinvolvedinwhathappensatthefrontline.This
showsthatwhathappensatthefrontlineiscruciallyimportanttothem.Theyachievethis
byregularlytalkingtoandworkingwithfrontlinestaffandcustomers.Manyspendalotof
timeatthefrontlineservingcustomersthemselves.Forexample,DisneyWorlds
managementspendstwoweekseveryyearinfrontlinestaffjobssuchassweepingstreets,
sellingicecream,orworkingasrideattendants,tobetterappreciateandunderstandwhat
43

reallyhappensontheground.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

20/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

Figure11.25showstheinvertedpyramid,whichhighlightstheimportanceofthefrontline.
Itshowsthattheroleoftopmanagementandmiddlemanagementistosupportthe
frontlineintheirtaskofdeliveringserviceexcellencetotheircustomers.

Figure11.25.Theinvertedorganizationalpyramid.

Chapter Summary
LO1Serviceemployeesareextremelyimportanttothesuccessofaservicefirm
becausethey:
Areacorepartoftheserviceproduct.
Representtheservicefirmintheeyesofthecustomer.
Areacorepartofthebrandastheydeliverthebrandpromise.
Generatesales,crosssalesandupsales.
Areakeydriveroftheproductivityofthefrontlineoperations.
Areasourceofcustomerloyalty.
Aretheoneswholeaveanimpressiononthecustomerinthosefewbutcriticalmoments
oftruthencounters,eveninlowcontactservices.

LO2Theworkoffrontlineemployeesisdifficultandstressfulbecausetheyarein
boundaryspanningpositionswhichoftenhave:
Organization/clientconflicts.
Person/roleconflict.
Interclientconflicts.
Emotionallaborandemotionalstress.
LO3Weusedthreetypesofcyclesinvolvingfrontlineemployeesandcustomers
todescribehowfirmscanbesetupforfailure,mediocrity,andsuccess:
TheCycleofFailureinvolvesalowpayandhighemployeeturnoverstrategy,andasa
consequenceresultsinhighcustomerdissatisfactionanddefections,whichdecreaseprofit
margins.
TheCycleofMediocrityistypicallyfoundinlargebureaucracies,offeringjobsecuritybut
notmuchscopeinthejobitself.Thereisnoincentivetoservecustomerswell.
SuccessfulservicefirmsoperateintheCycleofSuccess,whereemployeesaresatisfied
withtheirjobsandareproductive,andasaconsequence,customersaresatisfiedandloyal.
Highprofitmarginsallowinvestmentintherecruitment,developmentandmotivationof
therightfrontlineemployees.

LO4TheServiceTalentCycleisaguidingframeworkforsuccessfulHRstrategies
inservicefirms,helpingthemtomovetheirfirmsintothecycleofsuccess.Implementing
theservicetalentcyclecorrectlywillgivefirmshighlymotivatedemployeeswhoare
willingandabletodeliverserviceexcellenceandgotheextramilefortheircustomers,and
arehighlyproductiveatthesametime.Ithasfourkeyprescriptions:
Hiretherightpeople.
Enablefrontlineemployees.
Motivateandenergizethem.
Havealeadershipteamthatemphasizesandsupportsthefrontline.

LO5Tohiretherightpeople,firmsneedtoattract,select,andhiretheright
peoplefortheirfirmandanygivenservicejob.BestpracticeHRstrategiesstartwith
recognitionthat,inmanyindustries,thelabormarketishighlycompetitive.Competingfor
talentbybeingthepreferredemployerrequires:
Thatthecompanybeseenasapreferredemployer,andasaresult,receivealarge
numberofapplicationsfromthebestpotentialcandidatesinthelabormarket.
Thatcarefulselectionensuresnewemployeesfitbothjobrequirementsandthe
organizationsculture.Selectthebestsuitedcandidatesusingscreeningmethodssuchas
observation,personalitytests,structuredinterviews,andprovidingrealisticjobpreviews.
LO6Toenabletheirfrontlineemployees,firmsneedto:

Conductpainstakingextensivetrainingon:(1)theorganizationalculture,purpose,and
strategy,(2)interpersonalandtechnicalskills,and(3)product/serviceknowledge.
LO7Empowerthefrontlinesothattheycanrespondwithflexibilitytocustomer
needsandnonroutineencountersandservicefailures.Empowermentandtrainingwillgive
employeestheauthority,skills,andselfconfidencetousetheirowninitiativeindelivering
serviceexcellence.

LO8Organizefrontlineemployeesintoeffectiveservicedeliveryteams(often
crossfunctional)thatcanservetheircustomersfromendtoend.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

21/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

LO9Finally,energizeandmotivateemployeeswithafullsetofrewards,ranging
frompay,satisfyingjobcontent,recognitionandfeedback,togoalaccomplishment.
LO10Topandmiddlemanagers,includingfrontlinesupervisors,needto
continuouslyreinforceastrongculturethatemphasizesserviceexcellence.Effectiveservice
leadershipinvolves:
Focusingtheentireorganizationonsupportingthefrontline.
Havingastrongcommunicationsefforttoshapethecultureandgetthemessageto
everyoneinthecompany.

Unlock Your Learning

ThesekeywordsarefoundwithinthesectionsofeachLearningObjective(LO).Theyare
integraltounderstandingtheservicesmarketingconceptstaughtineachsection.Havinga
firmgraspofthesekeywordsandhowtheyareusedisessentialtohelpingyoudowellon
yourcourse,andintherealandverycompetitivemarketingsceneoutthere.

LO11Brand
2Lowcontactservices
3Momentsoftruth
4Personalizedrelationships
5Productivity
6Serviceemployees
7Servicefirm

LO28Boundaryspanning
9Emotionallabor
10Interclientconflict
11Organization/Clientconflict
12Person/Roleconflict
13Roleconflict
LO314Customercycleoffailure

15CycleofFailure
16CycleofMediocrity
17CycleofSuccess
18Employeecycleoffailure
19Servicesabotage

LO420Humanresourcemanagement
21ServiceTalentCycle

LO522Hire
23Multiple,structuredinterviews
24Observebehavior
25Personalitytests
26Preferredemployer
27Previewofthejob
28Select

LO629Interpersonalskills
30Organizationalculture
31Productknowledge
32Serviceknowledge
33Technicalskills
34Training
LO735Employeeinvolvement

36Employeeselfdirection
37Empowerment
38Highinvolvement
39Jobinvolvement
40Suggestioninvolvement
LO841Crossfunctionalteams

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

22/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

42Effectiveteamwork
43Selfmanagedteams
44Servicedeliveryteam
LO945Energize

46Feedback
47Goalachievement
48Jobcontent
49Motivate
50Recognition
LO1051Charismaticleadership
52Culture
53Invertedorganizationalpyramid
54RitzCarltonsGoldStandards
55Serviceculture
56Serviceleadership
57Transformationalleadership

Howwelldoyouknowthelanguageofservicesmarketing?Quizyourself!

Notfortheacademicallyfaintofheart

Foreachkeywordyouareabletorecallwithoutreferringtoearlierpages,give
yourselfapoint(andapatontheback).Tallyyourscoreattheendandseeifyou
earnedtherighttobecalledaservicesmarketeer.

Score
012ServicesMarketingisdoneagreatdisservice.
1323Themidnightoilneedstobelit,pronto.
2433Iknowwhatyoudidntdoallsemester.
3443ByGeorge!Youregettingthere.
4453Now,goforthandmarket.
5457Thereshouldbeamarketingconceptnamedafteryou.

KnowYourESM
ReviewQuestions
1.Whyareservicepersonnelsoimportantforservicefirms?
2.Thereisatrendofservicedeliverymovingfromhighcontacttolowcontact.
Areserviceemployeesstillimportantinlowcontactservices?Explainyour
answer.
3.Whatisemotionallabor?Explainthewaysinwhichitmaycausestressfor
employeesinspecificjobs.Illustrateyouranswerwithsuitableexamples.
4.WhatarethekeybarriersforfirmstobreaktheCycleofFailureandmove
intotheCycleofSuccess?Andhowshouldanorganizationtrappedinthe
CycleofMediocrityproceed?
5.Listfivewaysinwhichinvestmentinhiringandselection,training,and
ongoingmotivationofemployeeswillhaveapositiveimpactoncustomer
satisfactionfororganizationslike(a)arestaurant,(b)anairline,(c)ahospital,
and(d)aconsultingfirm.
6.DescribethekeycomponentsoftheServiceTalentCycle.
7.Whatcanaservicefirmdotobecomeapreferredemployer,andasa
result,receivealargenumberofapplicationsfromthebestpotential
candidatesinthelabormarket?
8.Howcanafirmselectthebestsuitedcandidatesfromalargenumberof
applicants?
9.Whatarethekeytypesoftrainingservicefirmsshouldconduct?
10.Whatarethefactorsthatfavorastrategyofemployeeempowerment?
11.Howcanfrontlineemployeesbeeffectivelymotivatedtodeliverservice
excellence?
12.Howcanaservicefirmbuildastrongserviceculturethatemphasizes
serviceexcellence?

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

23/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

WorkYourESM
ApplicationExercises
1.Anairlinerunsarecruitingadvertisementforcabincrewthatshowsa
pictureofasmallboysittinginanairlineseatandclutchingateddybear.
Theheadlinereads:Hismomtoldhimnottotalktostrangers.Sowhatshe
havingforlunch?Describethetypesofpersonalitiesthatyouthinkwouldbe
(a)attractedtoapplyforthejobbythatad,and(b)discouragedfrom
applying.
2.Considerthefollowingjobs:emergencydepartmentnurse,billcollector,
computerrepairtechnician,supermarketcashier,dentist,kindergarten
teacher,prosecutingattorney,serverinafamilyrestaurant,serverinan
expensiveFrenchrestaurant,stockbroker,andundertaker.Whattypeof
emotionswouldyouexpecteachofthemtodisplaytocustomersinthe
courseofdoingtheirjob?Whatdrivesyourexpectations?
3.UsetheServiceTalentCycleasadiagnostictoolonasuccessfulandan
unsuccessfulservicefirmyouarefamiliarwith.Whatrecommendationswould
youprescribetoeachofthesetwofirms?
4.Thinkoftwoorganizationsyouarefamiliarwith,onethathasaverygood
serviceculture,andonethathasaverypoorserviceculture.Describethe
factorsthatcontributedtoshapingthoseorganizationalcultures.Whatfactors
doyouthinkcontributedmost?Why?
5.Whichissuesdoyouseeasmostlikelytocreateboundaryspanning
problemsforemployeesinacustomercontactcenteratamajorInternet
serviceprovider?Selectfourissuesandindicatehowyouwouldmediate
betweenoperationsandmarketingtocreateasatisfactoryoutcomeforall
threegroups.
6.Identifythefactorsneededtomakeserviceteamssuccessfulin(a)an
airline,(b)arestaurant,and(c)acustomercontactcentre.

Endnotes
1 .AdaptedfromLeonardL.Berry,DiscoveringtheSoulofServiceTheNineDriversof
SustainableBusinessSuccess.NewYork:FreePress,1999,156159.

2 .LilianaL.Bove,andLesterW.Johnson,CustomerRelationshipswithService
Personnel:DoWeMeasureCloseness,QualityorStrength?JournalofBusinessResearch
54(2001):189197MagnusSderlundandSaraRosengren,RevisitingtheSmilingService
WorkerandCustomerSatisfaction,InternationalJournalofServiceIndustryManagement
19,no.5(2008):552574AnatRafaeli,LitalZiklik,andLornaDoucet,TheImpactof
CallCenterEmployeesCustomerOrientationBehaviorsandServiceQuality,Journalof
ServiceResearch10,no.3(2008):239255.

3 .Recentresearchestablishedthelinkbetweenextraroleeffortandcustomer
satisfactione.g.,CarmenBarrosoCastro,EnriqueMartnArmario,andDavidMartnRuiz,
TheInfluenceofEmployeeOrganizationalCitizenshipBehavioronCustomerLoyalty,
InternationalJournalofServiceIndustryManagement15,no.1(2004):2753.

4 .http://www.fiveguysproductions.com/2010/08/justlittleexcitementonmy
flight.html(http://www.fiveguysproductions.com/2010/08/justlittleexcitementonmyflight.html),accessed
March12,2012,JustaLittleExcitementonmyFlightToday,postedonAugust9,2010
byPhil.

5 .VaikakalathurShankarMasheshandAnandKasturi,ImprovingCallCentreAgent
Performance:AUKIndiaStudyBasedontheAgentsPointofView.International
JournalofServiceIndustryManagement17,no.2(2006):136157.Onpotentially
conflictinggoals,seealso:DetelinaMarinova,JunYe,andJagdipSingh,DoFrontline
MechanismsMatter?ImpactofQualityandProductivityOrientationsonUnitRevenue,
Efficiency,andCustomerSatisfaction,JournalofMarketing72,no.2(2008):2825.

6 .ArlieR.Hochschild,TheManagedHeart:CommercializationofHumanFeeling
(Berkeley:UniversityofCaliforniaPress,1983).

7 .SeealsoMichelRodandNicholasJ.Ashill,SymptomsofBurnoutandService
RecoveryPerformance,ManagingServiceQuality19,no.1(2009):6084JodyL.
Crosno,ShannonB.Rinaldo,HuldaG.Black,andScottW.Kelley,HalfFullorHalfEmpty:
TheRoleofOptimisminBoundarySpanningPositions,JournalofServiceResearch11,no.
3(2009):295309.

8 .Forhowfrontlinestaffresistemotionallabor,see:JocelynA.HollanderandRachelL.
Einwohner,ConceptualizingResistance,SociologicalForum19,no.4(2004):533554
DianeSeymour,EmotionalLabour:AComparisonBetweenFastFoodandTraditional
ServiceWork,InternationalJournalofHospitalityManagement19,no.2,(2000):159
171PeterJohnSandifordandDianeSeymour,ReactingtotheDemandsofServiceWork:
EmotionalResistanceintheCoachInnCompany,TheServiceIndustriesJournal31,nos.
78(May2011):11951217.

9 .JochenWirtzandRobertJohnston,SingaporeAirlines:WhatItTakestoSustain
ServiceExcellenceASeniorManagementPerspective,ManagingServiceQuality13,no.1
(2003):1019andLoizosHeracleous,JochenWirtz,andNitinPangarkar,FlyingHighina
CompetitiveIndustry:SecretsoftheWorldsLeadingAirline.(Singapore:McGrawHill,
2009).
10.ThetermsCycleofFailureandCycleofSuccesswerecoinedbyLeonardL.
SchlesingerandJamesL.Heskett,BreakingtheCycleofFailureinServices,Sloan
ManagementReview(Spring1991):1728.ThetermCycleofMediocritycomesfrom
ChristopherH.Lovelock,ManagingServices:TheHumanFactor,inW.J.GlynnandJ.G.
Barneseds.UnderstandingServicesManagement.(Chichester,UK:JohnWiley&Sons,
1995),228
11.LloydC.HarrisandEmmanuelOgbonna,ExploringServiceSabotage:The
Antecedents,Types,andConsequencesofFrontline,Deviant,AntiserviceBehaviors,
JournalofServiceResearch4,no.3(2002):163183.
12.LeonardSchlesingerandJamesL.Heskett,BreakingtheCycleofFailure,Sloan
ManagementReview(Spring1991):1728.

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

24/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

13.RegPriceandRoderickJ.Brodie,TransformingaPublicServiceOrganizationfrom
InsideOuttoOutsideIn,JournalofServiceResearch4,no.1(2001):5059.
14.MahnHeeYoon,TheEffectofWorkClimateonCriticalEmployeeandCustomer
Outcomes,InternationalJournalofServiceIndustryManagement12,no.5(2001):500
521.
15.CharlesA.OReillyIIIandJeffreyPfeffer,HiddenValueHowGreatCompanies
AchieveExtraordinaryResultswithOrdinaryPeople(Boston,Massachusetts:Harvard
BusinessSchoolPress,2000),1.
16.ThomasH.Davenport,JeanneHarrisandJeremyShapiro,CompetingonTalent
AnalyticsHarvardBusinessReview(October2010):5258.
17.Thissectionwasadaptedfrom:BenjaminSchneiderandDavidE.Bowen,Winningthe
ServiceGame(Boston:HarvardBusinessSchoolPress,1995),115126.
18.JohnWooden,ALifetimeofObservationsandReflectionsOnandOfftheCourt
(Chicago:Lincolnwood,1997),66.
19.MichaelJ.Tews,KathrynStafford,andJ.BruceTracey,WhatMattersMost?The
PerceivedImportanceofAbilityandPersonalityforHiringDecisions,CornellHospitality
Quarterly52,no.2(2011):94101.
20.SeeTomJ.Brown,JohnC.Mowen,D.ToddDonovan,andJaneW.Licata,The
CustomerOrientationofServiceWorkers:PersonalityTraitEffectsonSelfandSupervisor
PerformanceRatings,JournalofMarketingResearch39,no.1(2002):110119Salih
Kusluvan,ZeynepKusluvan,IbrahimIlhanandLutfiBuyruk,TheHumanDimension:A
ReviewofHumanResourcesManagementIssuesintheTourismandHospitalityIndustry,
CornellHospitalityQuarterly51,no.2(May2010):171214HuiLiaoandAichiaChuang,
AMultilevelInvestigationofFactorsInfluencingEmployeeServicePerformanceand
CustomerOutcomes,AcademyofManagementJournal47,no.1(2004):4158Androniki
PapadopoulouBayliss,ElizabethM.InesonandDerekWilkie,ControlandRoleConflictin
FoodServiceProviders,InternationalJournalofHospitalityManagement20,no.2
(2001):187199.
21.SereneGoh,AlltheRightStaff,andArlinaArshad,PuttingYourPersonalitytothe
Test,TheStraitsTimesSeptember5,2001,H1.
22.DonaldW.JacksonJr.andNancyJ.Sirianni,BuildingtheBottomlinebyDeveloping
theFrontline:CareerDevelopmentforServiceEmployees,BusinessHorizons52(2009):
279287TimothyR.HinkinandJ.BruceTracey,WhatMakesItSoGreat?AnAnalysisof
HumanResourcesPracticesamongFortunesBestCompaniestoWorkFor,Cornell
HospitalityQuarterly51,no.2(May2010):158170RickGarlick,DoHappyEmployees
ReallyMeanHappyCustomers?OrIsThereMoretotheEquation?CornellHospitality
Quarterly51,no.3(August2010):304307.
23.YukariIwataniKaneandIanSherr,SecretsfromApplesGeniusBar:FullLoyalty,No
Negativity,TheWallStreetJournal,June15,2011,
http://online.wsj.com/article/SB10001424052702304563104576364071955678908.html
(http://online.wsj.com/article/SB10001424052702304563104576364071955678908.html),accessedMarch12,

2012.
24.LeonardL.Berry,DiscoveringtheSoulofServiceTheNineDriversofSustainable
BusinessSuccess(NewYork:TheFreePress,1999),161.
25.DisneyInstitute,BeOurGuest:PerfectingtheArtofCustomerService.Disney
Enterprises(2001).
26.DavidA.Tansik,ManagingHumanResourceIssuesforHighContactService
Personnel,inD.E.Bowen,R.B.Chase,T.G.Cummings,andAssociateseds.Service
ManagementEffectiveness(SanFrancisco:JosseyBass,1990),152176.
27.PartsofthissectionarebasedonDavidE.BowenandEdwardE.Lawler,III,The
EmpowermentofServiceWorkers:What,Why,HowandWhen,SloanManagement
Review(Spring1992):3239.
28.DanaYagil,TheRelationshipofCustomerSatisfactionandServiceWorkersPerceived
ControlExaminationofThreeModels,InternationalJournalofServiceIndustry
Management13,no.4(2002):382398.
29.GrahamL.BradleyandBeverleyA.Sparks,CustomerReactionstoStaff
Empowerment:MediatorsandModerators,JournalofAppliedSocialPsychology30,no.5
(2000):9911012.
30.DavidE.BowenandEdwardE.Lawler,III,TheEmpowermentofServiceWorkers:
What,Why,HowandWhen,SloanManagementReview(Spring1992):3239.
31.JonR.KatzenbachandDouglasK.Smith,TheDisciplineofTeams,HarvardBusiness
Review(MarchApril,1993):112.
32.AndrewSergeantandStephenFrenkel,WhenDoCustomerContactEmployees
SatisfyCustomers?JournalofServiceResearch3,no.1(August2000):1834.
33.AddeJong,KodeRuyter,andJosLemmink,AntecedentsandConsequencesofthe
ServiceClimateinBoundarySpanningSelfManagingServiceTeams,Journalof
Marketing68(April2004):1835.
34.MikeOsheroff,TeamworkintheGlobalEconomy,StrategicFinance88,no.8(Feb
2007):25,61
35.ThissectionisbasedonSchneiderandBowen,WinningtheServiceGame,145173.
36.AdamM.Grant,HowCustomersCanRallyYourTroops,HarvardBusinessReview
(June2011):96103.
37.Theauthorsofthefollowingpaperemphasizetheroleofalignmentbetweentradition,
cultureandstrategythattogetherformthebasisforthefirmsHRpractices:Benjamin
Schneider,SethCHayes,BengChongLim,JanaL.Raver,EllenG.Godfrey,MinaHuang,
LisaH.Nishii,andJonathanC.Ziegert,TheHumanSideofStrategy:Employee
ExperiencesofaStrategicAlignmentinaServiceOrganization,OrganizationalDynamics
32,no.2(2003):122141.
38.ScottB.MacKenzie,PhilipM.Podsakoff,andGregoryA.Rich,Transformationaland
TransactionalLeadershipandSalespersonPerformance,JournaloftheAcademyof
MarketingScience29,no.2(2001):115134.
39.LeonardL.Berry,OnGreatServiceAFrameworkforAction,236237LeonardL.
BerryandKentD.Seltman,ManagementLessonsfromMayoClinic:InsideOneofthe
WorldsMostAdmiredServiceOrganization.McGrawHill(2008).Thefollowingstudy
emphasizedtheimportanceoftheperceivedethicalclimateindrivingservicecommitment
ofserviceemployees:CharlesH.SchwepkerJr.andMichaelD.Hartline,Managingthe
EthicalClimateofCustomerContactServiceEmployees,JournalofServiceResearch7,

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

25/26

09/09/2015

Chapter11.ManagingPeopleforServiceAdvantageEssentialsofServicesMarketing,SecondEdition

no.4(2005):377397.
40.SchneiderandBowen,WinningtheServiceGame,240.
41.JosephA.Mitchelli,TheNewGoldStandard:5LeadershipPrinciplesforCreatinga
LegendaryCustomerExperienceCourtesyofTheRitzCartonHotelCompany.McGraw
Hill,2008:6166,and191197.
42.PaulHemp,MyWeekasaRoomServiceWaiterattheRitz,HarvardBusiness
Review80,(June2002):811.
43.CatherineDeVrye,GoodServiceIsGoodBusiness,(UpperSaddleRiver,NJ:Prentice
Hall,2000),11.

PREV

NEXT

Recommended / Queue / Recent / Topics

/Chapter
Tutorials10.
/ Settings
Feedback
IV: The(http://community.safaribooksonline.com/)
ESM Fr...
/
Craftin.../ Blog /Part

Sign Out
2015 Safari.
Terms of Service / Privacy Policy

https://www.safaribooksonline.com/library/view/essentialsofservices/9780133359008/ch11.html

26/26